Panchabuta India Renewable Energy Outlook

7/30/2019 Panchabuta India Renewable Energy Outlook

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PANCHABUTARENEWABLE ENERGY AND CLEANTECH IN INDIA

4 28Page

14Page Page

Wind REC Solar

Indian Renewable

Energy

Outlook on

2012


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Dear Colleagues,

The Indian renewable energy industry is on an accelerated growth trajectory. For years, it was a staid, laid-back

industry, heavily oriented in wind and anchored only in one state - Tamil Nadu. In the last three years it has

been looking like the sprint part of a marathon. While wind is literally going places, spreading out to several

states, solar has brightened. At the last count, the renewable energy industry boasted of a capacity of 24,998

MW, but the fun has only just begun.

While the nature of the wind industry has just undergone a metamorphic change, from a tax-saving AD model

to a generation-focussed IPP model, the industry has become footloose. Today, as Tamil Nadu seems to have

pressed the pause button, Maharashtra and Gujarat have become the rain makers for the industry, with Karna-

taka and Andhra Pradesh following closely.

Solar is resembling a new glam-girl in Bollywood. State after state is announcing its policy and developers are

busy making plans against the sudden opening up of opportunities. And the next phase of the National Solar

Mission is just about to, well, dawn.

It is against this backdrop that various stakeholders are thirsting for knowledge, backgrounds, insights, projec-

tions, data - completely untainted by commercial considerations.

This handbook is the result of Panchabutas initiative to put such knowledge into the hands of stakeholders. And

this is only the first of a series of such issues that will be on the table once every six months.

Best Wishes,

Vineeth Vijayaraghavan

Founding EditorPanchabuta

EDITORIAL

1

Panchabuta-Renewable Energy & Cleantech in India www.panchabuta.com


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TABLE OF CONTENTS

Editorial .............................................................................................................................. 1

WIND ENERGY ......................................................................................................................4

Outlook on Indian Wind Market ....................................................................................... 4

Interview with Madhusudan Khemka (ReGen Powertech) .............................................10

Interview with P. Krishnakumar (OGPCL) .......................................................................12

RENEWABLE ENERGY CERTIFICATES ...................................................................14

Outlook on Indian REC Market........................................................................................14

COUNTRY PROFILE ..........................................................................................................17

Canada ...............................................................................................................................17

EBTC ..................................................................................................................................18

Cleantech Finland ............................................................................................................ 22

NARMADA CANAL SOLAR PLANT CASE-STUDY .......................................... 26

SOLAR ENERGY ................................................................................................................ 28

Interview with Ardeshir Contractor (Kiran Energy) ....................................................... 28

Interview with Sujoy Ghosh (First Solar) ........................................................................ 30

Interview with Giancarlo Chiapparoli and Robert Lenke (Bonfiglioli) ......................... 32

Outlook on Indian Solar Market.......................................................................................35

This publication is a sole property of Panchabuta and it s contents should not be reproduced withou t the prior consent of Panchabuta. For feedback, queries and features inPanchabuta, email [email protected]. For advertising with Panchabuta, email [email protected]


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OUTLOOK ON INDIAN WIND MARKET

Indias foray into the wind energy segment began in the early 1990s and has shown remarkable growth over

the past two decades to become the largest contributor of renewable power generation in the country. The

tremendous growth witnessed in the wind energy sector is seen in the results achieved thus far India cur-

rently ranks 5th in the global list of top countries in terms of installed wind energy generation capacity with

an installed capacity of about 18 GW. Currently, wind power accounts for about 70% of the total installed

renewable capacity and about 8.5% of the total installed capacity in the country. It is estimated that atleast

7,500 MW of additional wind power capacity will be installed in India between 2012 and 2015, taking the total

insta lled capacity beyond 22GW.

Manufacturer Installed Capacity in MW

year wise

2009-10 2010-11 2011-12

Suzlon 762.65 954.6 1149

Enercon 348.8 504 767

ReGenPowertech

55.5 121.65 416

Gamesa 15.3 230.3 312

Vestas 121.95 175.5 260

Others 259.7 334.23 259

Total 1563.9 2320.28 3163

In addition to the progress made in wind

turbine insta lled capacities, the progress

of the overall wind energy ecosys tem has

been encouraging as well. Pointers to

this are the increasing number of com-

ponent manufacturers and the rapid uti-

lization of Indias land for wind energy.

While the growth of wind power in India

was largely driven by tax incentives until

now, the recent removal of the acceler-

ated depreciation benefits for wind proj-

ects has resulted in a changing market

dynamic wherein a significant portion of

all new wind energy additions are likely

to be driven by the IPP (Independent

Power Producer) and captive customer

segment.

Potential

The total potential for wind power in In-

dia was first estimated by the Centre for

Wind Energy Technology (C-WET) at 45

GW, and was recently increased to 48.5

GW. This figure was also adopted by

the government as the official estimate.

At heights of 55-65 meters, the Indian

Wind Turbine Manufacturers Association

(IWTMA) estimates that the potential for

wind development in India is around 65-

70 GW. The World Institute for Sustain-

able Energy (WISE) estimates that with

larger turbines, greater land availability

and expanded resource exploration, the

potential could be as high as 100 GW. A100 GW potential for wind energy sig-

nificantly widens the attractiveness of

the Indian wind energy segment, given

that the total installed capacity for elec-

tricity in India is about 160 GW. In addi-

tion to this, significant potential exists

in the offshore wind energy sector. In

view of this, MNRE has recently com-

missioned studies to estimate the poten-

tial of offshore wind in India which is to

be completed over the course of the nexttwo years. In the future, a considerable

portion of the capacity addition is also

expected to come from repowering of

existing wind farms. This is due to the

fact that most high wind energy density

sites are already exploited and are occu-

pied (in most cases) by machines that are

old, lower in capacity and less efficient

than those currently available. Upgrad-

ing these wind farms with better design

as well as the use of more efficient tur-

bines would result in the wind farms see-

ing higher plant load factor (PLF) thereby

aiding in the realization of higher rev-

enue. For example, Gamesa recently

completed replacing 11 old wind mills of

225 kW capacity each with th ree 850 kW

turbines. As a result of this, the capacity

of the plant remained almost the same,

but the PLF was much higher due to the

fact that the new turbines operated even

at lower speeds, were more efficient and

had little downtime.

Projected Benefits ofRepowering Wind Farms

Existing

Wind

Farm

After

Repowering

Capacity 8.1 MW 8.5 MW

Estimated

Annual

Generation

104 lakh

units

220 lakh

units

Plant Load

Factor

14.7% 29.5%

Installed Capacity

The geographic distribution of the ca-

pacity is diverse. The geographic distri-

bution of the wind power in the country

follows the available wind energy poten-

tial in the states.

State

Cumulative

Installed

Capacity

(MW)

Tamil Nadu 6970

Gujarat 2884

Maharashtra 2311Rajasthan 2072

Karnataka 1730

Andhra Pradesh 392

Madhya Pradesh 276

Others 1332

Total 17967

Tamil Nadu is the clear leader when it

comes to the total wind capacity in-

stalled in India accounting for close to


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40% of the overall installed wind energy

capacity. Tamil Nadu is followed by Ma-

harashtra, Gujarat and Rajasthan three

states which have taken significant ef-

fort in bolstering their wind capacity.

Maharashtra is slowly gaining ground on

Tamil Nadu as most developers observe

that the states wind zone based tariff

system is conducive for financially viabledevelopment of power plants. Further-

more, with payment security being one

of the major concerns in Tamil Nadu, de-

velopers are moving away from the once

home of wind energy to new pastures.

With capacity additions down by a sig-

nificant percentage this financial year in

some of the leading states such as Tamil

Nadu, Gujarat and Rajasthan, states such

as Maharashtra and Karnataka have seen

an increase in capacity additions for rea-sons stated above. It is highly likely that

Maharashtra, Andhra Pradesh, Rajast-

han and Karnataka are likely to be the

next emerging markets for wind energy

capacity additions.

Policy Framework

Feed in Tariff

The wind energy industry has been

driven primarily through a feed in tariff

mechanism. The feed in tariff for each

state is come up by their respective

State Electricity Regulatory Commission

(SERC). The various SERCs thus far have

adopted a cost-plus approach where

in the costs associated with setting up

a wind power plant such as capital ex-

penses, operational expenses are consid-

ered based on discussions with various

stakeholders. The feed in tariff is then

calculated based on the levelized costthat is achieved through these assump-

tions with a small margin added so that

Orissa Rs. 5.31 No esca lat ion

for 13 years

Punjab Rs. 5.96

(without

AD) Rs.

5.36 (with

AD)

Rajasthan Rs. 5.18

(withoutAD) Rs.

4.89 (with

AD)

No escalationfor 25 years.Applicable towind PowerPlants locatedin Jaisalmer,Jodhpur &Barmer dis-tricts

Rs. 5.44

(without

AD) Rs.

5.13 (with

AD)

No escalationfor 25 years.Applicable towind PowerPlants locatedin districtsother thanJaisalmer,

Jodhpur &Barmer dis-tricts.

Tamil

Nadu

Rs. 3.51 No esca lat ionfor 20 yearsof project life

West

Bengal

Rs. 4.87 No esca lat ion

for 10 years

Accelerated Depreciation

Wind capacity additions reached its ze-

nith under the accelerated depreciation

(AD) regime where wind farm develop-ers were offered fiscal incentives (tax

benefits). The incentive offered, allowed

for wind farm developers to opt for 80%

AD on their assets. This led to a tremen-

dous growth in wind capacity additions

as it provided captive customers with

dual incentives of energy generation for

self consumption and tax benefits under

accelerated depreciation.

Earlier, it was suggested that the AD

benefit for setting up wind farms wouldbe withdrawn with the introduction of

the new direct tax code. However, earlier

this year MNRE announced that the AD

benefits enjoyed by developers thus far

would be withdrawn from financial year

2012-13 i.e. f rom 1st April 2012 onwards.

The industry, to an extent had anticipat-

ed this move as it is clearly evident from

the percentage of developers opting for

the AD mechanism over the past year. It

is estimated that the number of consum-ers availing the AD benefit gradually

developers can make profits.

One other important aspect considered

while setting the wind energy tariff is

the capacity utilization factor (CUF).

CUF is a function of the site at which

the wind turbine is located and as such

various regions across a state might have

different wind regimes thereby affect-

ing the electricity generated and hencerevenues. This has led to some states

such as Maharashtra opting for a tariff

scheme which is tied to the prevailing

wind regime across the various parts of

the state leading to what is known as a

zone based tariff. In this mechanism,

the projects in regions with the lowest

wind energy density are offered a higher

tariff while the highest wind energy den-

sity region is given a lower tariff. This

ensures that the returns for all projects

remain the same and the variance due towind energy regimes is minimized to a

very large extent.

States Tariff rates

per KWh

Annual tariff

escalation

Andhra

Pradesh

Rs. 3.50 Constant for

10 years for

the PPAs to be

signed during

01-05-2009 to

31-03-2014

Gujarat Rs. 4.23 No es calationfor 25 years of

project life

Karnataka Rs. 3. 70 No es calation

for 10 years

Kerala Rs. 3.60 No es calation

for 20 years of

project life

Madhya

Pradesh

Rs. 4.35 No es calation

for 25 years of

project life

Maharashtra

(Incl. AD)

Wind Zone

I-Rs. 4.86

No escalation

for 13 years

Wind Zone

II-Rs. 4.23

Wind Zone

III-Rs. 3.60

Wind Zone

IV-Rs. 3.24

Maharashtra

(Excl. AD)

Wind Zone

I-Rs. 5.67

No escalation

for 13 years

Wind Zone

II-Rs. 4.93

Wind Zone

III-Rs. 4.20

Wind ZoneIV-Rs. 3.78

It is estimated that upto 2000 MW

of wind power capacity was in-

stalled prior to 2003. These wind

farms use out-dated technology

while occupying prime wind energy

density sites, leading to sub optimal

electricity output.


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declined to about 45% in FY12 from the

earlier estimates of about 75%.

The impact of the removal of AD was im-

mediately evident. It has been reported

that the wind capacity additions across

the country fell by about 40% in the firs t

six months of the current financial year

(2012-13) to about 850 MW as opposed

to the 1402.66 MW added in the same

period during the previous financial year

(2011-12).

State

Capacity

Addition

2011-12

(H1)

(MW)

Capacity

Addition

2012-13

(H1)

(MW)

Percentage

decrease

Tamil

Nadu

644.21 954.6 75%

Gujarat 226.35 504 46%

Rajasthan 226.35 121.65 45%

Maha-

rashtra

152.65 230.3 -27%

Karna-

taka

105.30 148.95 -41%

(Based on information released by IWTMA)

Generation Based Incentive

The Generation Based Incentive (GBI)

scheme was introduced in 2009. The

reason behind the introduction of the

GBI mechanism was to provide devel-

opers with a generation based incentive

mechanism as they could not avail of

the depreciation benefits. Furthermore,

the introduction of the GBI was one

of the first steps which indicated that

there would be a shift in market dynam-

ics towards a more IPP driven model as

the GBI model favoured IPPs who were

likely to have higher installed capacities

thereby producing a larger quantum of

electricity.

The scheme offered a GBI of Rs. 0.50 per

kWh with a predefined cap of Rs. 62.5

lakhs per MW of the capacity installed.

The GBI offered is over and above the

tariff offered by each SERC. This how-

ever is exclusive of the AD benefit that

the wind farm developer would get. Thus

the developer had to make a choice as to

whether to go for the AD benefit or avail

the GBI. The GBI incentive scheme wasavailable till the end of the last finan-

cial year i.e. all projects commissioned

before 31st March 2012 were eligible for

GBI provided the developer chose to go

through this route.

The GBI mechanism initially stated that

the scheme would be available till 4000

MW of capacity were allocated under this

scheme or ti ll 31st March 2012, whichever

occurs earlier. However, till date there

has been less than 2000 MW installed

under this scheme but the 31st March

2012 deadline has long since passed. As

the industry awaits new orders on the

GBI mechanism, there have been reports

in the media that suggest that MNRE has

recommended a GBI of Rs. 0.82 per kWh

with the total capacity available to be

allocated pegged at 13,500 MW. With

neglibile chances of AD being reinstated,

the industry greatly depends on the ex-

istence of the GBI mechanism to drive

capacity additions.

Paradigm Shift

Another emerging model that is a finan-

cially viable solution remains the RPO/

REC market which favours a higher

quantum of energy generation which in

turn would dictate capacity additions

of a larger scale (on a per project basis).

In this scenario, capacity additions are

likely to be driven by large scale IPPs as

opposed to several small scale develop-

ers. This would indicate that the marketwould see additions of power plants of a

larger scale as opposed to several small-

er power plants.

The effect of this shift in trends is also

clearly highlighted by the market share of

some of the largest turbine manufactur-

ers in the country. Newer players like Re-

Gen Powertech that focus exclusively on

the IPP market has seen a rapid growth

in their capacity sold, driven through re-

peat orders from their IPP customers.

Sample List of IPPs

Installed Capacity and Capacity

Addition Targets

IPP

Total

Installed

Capacity

(MW)

Target

(MW)

Target

Year

CLP 740 200 -

300

(per

year)

TATAPower

370

OGPL 325.36 450 2013

Vedanta/HindustanZinc

274 N/A N/A

GreenInfra

240 3000 2015

Greenko 230.6 550 2015

Mytrah 224 500 2013

TechnoElectric /Simran

207.35 1250 2020

INOX 120 3000 2017

Gamma

Windfarms

(OGPL)

62.02

NALCO 50.4 100.4 2013

Indian

Energy

(Infrastruc-

ture India

PLC)

41.3 1000 2016

ReNew

Wind

Power

25.2 1000 2015

States with the highest wind energy

density site include Tamil Nadu, Guja-

rat, Rajasthan, Maharashtra and Kar-

nataka. Of these states, Karnataka is

the state with the most significant di-

vide between available potential and

installed capacity.

It is interesting to note that the wind

capacity additions has decreased sig-

nificantly in the leading wind energy

states in India i.e. Tamil Nadu and

Gujarat. However the insta lled capac-

ity has shown an increase in regions

such as Maharashtra and Karnataka

likely due to the increased demand

(i.e. low installed capacity vs. avail-

able potential). In Maharashtra spe-

cifically, the capacity additions are

largely driven by the unique/favour-

able wind zone based tariff regime

which has proved to be attractive to

many developers.


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A number of recent announcements with

regards to the wind capacity additions

have been from IPPs.

The shift towards an IPP driven market

will also lead to a change in the business

models of the turbine manufacturers.

Initially, all turbine manufacturers in the

country offered to undertake EPC ser-

vices for the construction of wind power

plants in addition to providing turbines

as customers expected the turbine man-

ufacturers to install the turbines, con-

nect it to the grid and operate and main-

tain it for them. This is in stark contrast

with what is witnessed in the Western

markets where the turbine manufactur-

ers merely provide the turbine and sup-

port services. With the emergence of

large scale wind IPPs in the country, the

turbine manufacturers are partneringwith the developers as the wind farms

are being built. The IPPs, as opposed to

small scale developers, have started to

develop inhouse expertise in develop-

ing as well as installing wind turbines

and as this trend continues, will gradu-

ally take over a number of EPC related

activities either into their fold or under

their supervision with thi rd party service

providers. Further, IPPs would prefer to

keep all sourcing/installation tasks un-

der their control as this would help themcut costs significantly. Over the course

of the next few years, we are likely to

see a complete transition to the western

model.

Way Forward

It has been firmly established that the

market going forward will be driven by

IPPs. The expiration of the GBI mecha-

nism in this scenario does not bode wellfor the market which at the moment

needs significant incentives to continue

to grow. Recent capacity addition trends

are worrying and indicate what might

happen if the status quo were to remain.

Reports suggest that the Ministry of

New and Renewable Energy (MNRE) has

taken the initial steps by recommend-

ing a revised GBI amount of Rs. 0.82 per

kWh going forward.

The RPO/REC mechanism seems to be

holding the wind industry up at the mo-

ment, though the introduction of fixed

transmission charges and cross subsidy

charges in certain states has once again

set this mechanism on a backfoot at the

moment . The current market conditions

where the enforcement of RPOs continue

to remain a challenge has led to the REC

prices hit the floor price levels as thereseems to be a temporary oversupply of

RECs. The demand needs to improve

significantly for the RPO mechanism to

sustain the wind industry and this is like-

ly to happen only if the RPO is enforced

more strictly with the major DISCOMS

being held accountable as they are the

largest obligated entities and hence the

largest consumer of RECs.

It should be noted that in stark contrast

with the solar industry, the wind indus-try is heavily indigenized. It is estimated

that anywhere between 40% and 75% of

all components used for the development

of a wind turbine/farm are manufactured

within the country. This certainly needs

to be viewed favorably by policy makers

in lieu of energy security and seperate

incentives must be provided to wind tur-

bine manufacturers in India.

The success of the wind industr y would

then have a direct impact on the econo-my, as the sector has created many jobs

as well as fostered the growth of vari-

ous other associated businesses. Most of

these jobs that have been created by the

wind sector in India has been in the rural

sector as most wind farms are located

in such areas. Having made signficant

contribution towards energy security,

climate change and rural employment in

India, the wind sector is now poised to

reach greater heights with policy support.

The market is shifting in the wind in-

dustry from a retail customer (small

capacity, owns few turbines) to large

scale wind farm developers that in-

clude large IPPs and captive custom-

ers. As this shift happens, the number

of deals in the market will greatly re-

duce and the deal sizes are bound to

increase significantly.

Recent revisions in potential es-

timates mind blowing even at a

conservative number of 100,000

MW

The nature of the wind industry

is changing from small, retail in-

stallations, to IPPs

A tough year for the industr y but

the future is secure for those who

survive the current slowdown

Industry is eagerly awaiting for-

mal announcement of the prom-

ised GBI


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You have been involved in the wind in-dustry for more than two decades. How

has the Indian wind industry evolved?

Between 1990-97, the wind industry in

India was just getting started. That was

the time when the introduction of con-

cepts and technologies happened in the

Indian market. 1997-2007 saw a t ransit ion

in the wind indust ry as new technology

was being introduced; a very high focus

was placed on quality and certification.

The introduction of the Electricity Act

2003, also made a big difference. During

this time, the concept of IPPs and larger

wind farms owned by corporate houses

became popular.

What was the motivation behind yourfounding ReGen Powertech in 2007?

Between 1997-2007, I had t aken a break

from the wind industry and from an

active role a s an insider. However, I was

working with and advising a lot of cor-

porate houses and friends. During this

time, I had the opportunity to see the in-

dustr y grow as an outsider and it provid-

ed me with a lot of insights that I would

have otherwise not got as an insider.

This was the period that the foundationfor ReGen Powertech was laid and we re-

alized that the focus in the industr y was

shifting to faster paced, larger projects,

with an emphasis on quality and focus

Madhusudan Khemka is the Founder and Managing Director of Re-

Gen Powertech. ReGen is the leader in IPP (Independent Power Pro-

ducer) sector and it ranks among top 3 Wind Energy Companies in

India. ReGen is uniquely positioned to capitalize on the growing de-

mand for wind power energy in India and other geographies.

COST OpTIMISATION, INDIgENISATION AND

pERFORMANCE ENhANCEMENT- KEyS TO

SUCCESS IN INDIAN WIND TURBINE MARKET

ReGen today hasachieved an indigenisa-

tion of 85%. This has

been made possible by

our focus on in-house

R&D team working on

the process.

We believe that costoptimisation, indigenisa-

tion and performance

enhancement are the

three key mantras for a

winning formula.

IPPs have both busi-ness models - turnkey

solutions and develop-

ment model. ReGen

supports both these

models of IPPs.


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large scale employment.

Could you elaborate on how indigenisa-

tion has led to job growth?

Typically a 400 -500MW plant does not

require a lot of employees, as it is an as-

sembly job. However our business model

is such that we encourage and work with

the SME sector to source the small com-

ponents and sub-assemblies. We pro-

vide employment to about 1300 people

and expect to provide employment to

about 1500 people in our second plant in

Udaipur. We would also be providing in-

direct employment to about 2000-3000

people.

How has this contributed to ReGens

differentiated business model?

Our in-house team has been able to

work successfully with our technology

partner and we have been able to launch

3 new models of 1.5 MW machines in a

short span of 4 years. During this time,

each of these machines have delivered

enhanced performance and have larger

swept areas over the earlier version with

marginal increase in costs. This leads to

better overall efficiency of the machine

and keeps the project viability very high

for the investors.

We believe that cost optimisation, indi-

genisation and performance enhance-ment are the three key mantras for a

winning formula.

ReGen has been credited with a num-

ber of repeat orders from IPPs includ-

ing Tata power. What has contributed

to this success?

Tata Power has placed 150 MW of two or-

ders, we now have a couple of more new

contracts. We have many other leading

IPPs and Indian corporate houses who

are our customers.

IPPs have both business models - turn-

key solutions and development model.

ReGen supports both these models of

IPPs. As a company, we provide full

handholding when they do their own

project. We provide all soft skill support

to clients including Project Management,

depute our people to help our clients

with managing the execution process

of development and introduce them to

potential suppliers and good quality con-

tractors.

Some of our large IPP customers in-clude :

Tata Power

NSL Wind Power

Nu Power Renewables

Green Infra

ReNew Wind Power Pvt. Ltd.

Bhilwara Green Energy

Hero Group

What do you see as opportunity and

challenges for the wind industry in

India, going forward?

The good thing is that IPPs are tak ing In-

dia as a serious investment destination.

They have made their initial investments

and their experience is good and they

are developing their business models.

Challenges of infrastructure, grid system

and policy framework remain. With IPPsplanning projects of 100-500 MW that

typically take more than two years to ex-

ecute, a policy window of two years is

a very short period to plan and execute

projects. I personally believe that our

country has a huge potential for wind

energy, at least a 100,000 MW of wind

energy is possible and 20-25% of energy

into the main grid can be from wind.

Given this potential, these small short-

comings can be overcome and wind will

play an important role in Indias energy

security and growth.

on technology.

ReGen Powertech has a unique busi-

ness model focused exclusively on IPPs.

How has ReGen been able to differenti-

ate itself?

When we started in 2007, I was con-

vinced that wind energy was a viable

business on its own. ReGen took on the

challenge of designing the company to

meet IPP expectations. We focussed on

quality practices, technology and sys-

tems. We also realized that we had to

provide viable projects to IPPs and began

focusing on that. Today 100% of ReGens

business comes from the IPP sector and

we have set new rules for the industry

in India.

ReGen has a strong emphasis on indi-

genisation. What has been your success

and how has this been made possible?

At the very outset we realized that in-

digenous manufacturing can bring down

costs by about 35%. We use very less off

-the-shelf components and most of our

components are made in-house. ReGen

today has achieved an indigenisation of

85%. This has been made possible by

our focus on in-house R&D team work-

ing on the process.

Our business model is based on in-house

value addition. ReGen does not buy ma-jor components in ready-made condi-

tions. We buy small components and

sub-assemblies and the major manufac-

turing process happens in house. This

has resulted in cost optimisation and


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What has been your experience with

sales to third parties and open access

customers under open market tariffs?

Our experience on sale to third party

customers has been positive, particularly

in Tamilnadu due to better realisations

and prompt payment mechanism. There

are challenges in some states like Mad-

hya Pradesh where this model is yet to

evolve and we expect it to be in place in

the next month or two.

Having been one of the largest sellers

in the REC market, what has been your

experience so far?

While REC is a welcome intervention

to support RE sector growth and re-duce impact of Climate Change in the

country, the compliance of RPO is still

at early stages. This is primarily due to

lack of enforcement mechanism in place,

resulting in most utilities staying away

from this evolving market.

While price volatility is expected in an

evolving market, lack of demand due to

non-compliance of RPO still remains a

challenge. Prices have been moderate in

Mr. P. Krishnakumar is the Managing Director of Orient Green

Power Company Limited (OGPCL), Chennai. OGPCL is the largest

independent operator and developer of renewable energy powerplants in India based on aggregate installed capacity. Currently

their portfolio includes biomass, biogas, wind energy and small

hydroelectric projects at various stages of development. As on Sep12,

OGPCL had 338.4 MW of Wind and 60.5 MW of biomass in opera-

tion.

OGPL Wind farm located at Tadaparti

OgpCL TARgETS 600 MW CUMULATIvE

CApACITy By END OF NExT yEAR

Separate floor andforbearance price or

indexing (2 REC for

1 MWh) needs to be

considered for Biomass

power RECs as signifi-

cant fuel cost is in-

volved in generation.

High lending rates at14 - 17% in India makes

it a challenge for RE

investors.


12


15/44

is certainly a challenge facing the indus-

try. We had represented through Indian

Biomass Power Association to CERC/

MNRE to look at annual reset of vari-

able cost based on fuel cost instead of

current 3 years control period. Another

area wherein the governments support

is sought, is to provide unused land for

development of Energy Plantations. Thisis in Biomass Policy of Rajasthan Govt

(though challenges remain) and is in

place in neighbouring Srilanka which

is encouraging investments in Biomass

Power Sector.

At OGPL, with a team for Energy Planta-

tions, we work with group of farmers,

SHGs and agri research organisations

to encourage usage of unused land for

productive energy plantations. In some

cases, we also are implementing intercrop in their existing farms to augment

revenues for them. Support through

technical inputs in crop selection, seed

supplies and assured buy back arrange-

ments help in developing this model.

We plan to reach about 30% of sourc-

ing through these init iatives in the next

couple of years.

What do you see as the biggest chal-

lenges for renewables going forward?

There is an urgent need to review lend-

ing norms for RE sector and bring it on

par with agri sector. Though this indus-

try is located in the rural part of India

providing employment opportunities,

enhanced economic returns to farmers

through sourcing of agri waste (in the

case of biomass) and supply of power to

the rural grid, loans are provided at sig-nif icantly higher levels of 14-17% making

it challenging for investors.

Lack of Open Access, resistance to per-

mit REC based projects and transmis-

sion related issues in some states are

areas that are cause for concern. RE as

a sector should be exempted from cross

subsidy/taxes till the industry matures

and is able to reach grid parity in tariff.

What kind of capacity additions have

you planned over the next 3-5 years?

We plan to take our Wind capacities to

over 500 MW and Biomass Capacity to

over 100 MW in the next year or so. Our

Wind Portfolio will be about 325 MW in

Tamilnadu, 125 MW in Andhra Pradesh

and 50 MW in Gujarat.

Biomass will be about 32.5 MW in

Tamilnadu, 34 MW in Rajasthan, 22 MW

in Maharashtra, 10 MW in MP and 7.5

MW in Andhra Pradesh.

Finally, any plans to enter solar sector

as a developer?

We are closely monitoring the develop-

ing Solar Power market. We have no im-

mediate plans to enter Solar Power and

will continue to our focus on Wind and

Biomass Power segments.

OGPL Wind farm with 250 WEGsat Karuneerkulam

the 1st Quarter of FY13, but are at floor

level since then, due to lower demand.


lenges in the REC market currently and

what kind of changes would you like

seen introduced, in the REC market?

As mentioned earlier, the enforcement

of RPO is the key to make the marketstable and perhaps quarterly compliance

by obligated entities (instead of annual

at present) will help. Also bi-monthly in-

stead of monthly (editor note: trading of

REC now happens monthly on the last

Wednesday of each month) as a start wil l

bring more traction in the market place.

Another area needing attention is to fix

separate floor and forbearance for Bio-

mass Power RECs (or indexing as two

RECs for 1 MWh) is needed consider-ing that significant fuel cost is involved

in generation. We expect some of these

will be addressed by CERC in the near

future to encourage investments in the

RE sector.

Given the challenges in fuel supply and

pricing for biomass, how has Orient

Green Power been able to manage sup-

ply and handle cost of raw material?

Biomass fuel sourcing at the right price


13


16/44

OUTLOOK ON INDIAN REC MARKET

Market tradeable Renewable Energy Certificates (REC) is a tool successfully used by many countries to give a

push to the renewable energy indust ry, but is quite complex as it requires creation of a market from the scratch.

Given the complexity of the matter, the Government of India has done a commendable job of rolling it out, and

that too, in quick time.

After a formal launch on November 18,

2010, REC trading got off to a dream

start in 2011-12. True, i t is not quite a

mature market as yet, in the sense that

there is no secondary market (what to

speak of derivatives), the instrumentshave a life of only one year, the record

of enforcement of the obligations of the

buyers is somewhat wobbly. Yet, as the

following figures show, the REC regime

has indeed got off to a pretty good start.

Nothing is a better endorsement of the

successful start of the regime than the

fact that in just a little over one year, as

much as 15 per cent of Indias renewable

energy capacity has been registered un-der the REC mechanism. Each month,

about 170 MW of capacity gets added to

the REC regime.

The extant rules envisage two kinds of

RECs: Solar RECs for generation through

Solar PV & Solar Thermal technology, and

Non - Solar RECs for generation through

renewable sources other than solar. These

RECs will be sold in a price band of Floor

Price (minimum price) and Forbearance

Price (maximum price). Floor and Forbear-

ance price for Solar and Non - Solar RECs

are given in table below:

Type of REC Floor Price in

(Rs./REC)

Forbearance

Price

(Rs./REC)

Solar REC 9,300 13,400

Non - Solar

REC

1,500 3,300

The RECs are traded on the two power

exchanges of the countrythe Indian

Power Exchange Ltd and the Power Ex-

Demand Supply - Non-Solar RECs

Source : REConnect

change of India Ltd. The former has a

dominant share of the market, consis-

tently over 90 per cent, but PXIL is slow-

ly gaining share, percentile by percentile.

In September, the market had 11.80 lakh

RECs floating in market.

Still a nascent market

The Indian REC regime is still nascent,

and its progress resembles baby-walk.

Less than half way through the second

year, the market is seeing some prob-lems, mainly in terms of oversupply of

instruments. This perhaps was inevita-

ble. The biggest obligated entities are

the state-owned electricity distribution

companies, who for a variety of histori-

cal reasons, are not in good financial

health. These entities have kept away

from the REC market, thus taking out

a big demand force. Normally, the state

electricity regulators would have applied

the stick on these discoms and made

them meet their obligations, but in prac-tical terms, doing so would be meaning-

less just because these discoms had little

wherewithal to meet their obligations.

The regulators have shown understand-

able leniency. The Courts, on the other

hand, wherever they were called in for

judgement, have not discharged the dis-

coms of their obligations but have given

Demand Supply (Non-Solar RECs)

Source : REConnect


14


17/44

have opted for a very conservative RPO

targets and states like TN and Rajasthan

have even reduced their RPO targets.

This has resulted in significant reduction

in expected demand for green power &

REC.

These issues have the attention of the

Government and it is a fair assumption

that they would be resolved in a man-

ner consistent with the objectives of

the Na t i o n a l Action Plan for Climate

Change.

Solar REC market

Despite an uncertain enforcement sce-

nario and no near-term fixes, an analy-

sis done by the consultancy REConnect

finds that Solar-REC (S-REC) demand

will exceed supply by a wide margin.

This is primarily because solar capacity

in RECs mechanism will grow slowly.

All this will result in S-RECs trading well

above floor prices in the period covered

upto FY 2016-17. This is also evident

from the fact that despite a very modest

demand for Solar RECs, the solar prices

have remained significantly higher due

to unavailability of S-REC in a larger

magnitude.

Outlook on S-REC Market

With non-existence of GBI and acceler-

ated depreciation benefits in the wind

generation, it can be expected that a sig-

nificant chunk of investors would opt for

Solar based generation where not only

accelerated depreciation is available, but

many states are also offering other in-

centives like favourable provisions for

energy banking (AP, Karnataka (under

S-REC Supply

Source : REConnect

Demand Supply (Non-Solar RECs)

Source : REConnect

them time to meet thema one-year

rollover. This stance taken by the courts

and the fact that a number of things are

happening in terms of improving the fi-

nancial health of the discoms, it is to be

expected that in the coming months, the

oversupply situation in the market would

be corrected.

Current state of the market

The current state of REC market ought to

be seen in the above perspective. While

the weighted average price for non.-

.Solar RECs remained at about Rs.2,800/

REC in FY 2010-11, in the current f inan-cial year, the stakeholders have already

started finding it difficult to sell non.-

.Solar RECs even at the Floor price of

Rs.1,500/REC.

The Key Issues

Under the 12th plan, about 32,000 MW

of capacity is envisaged to be contrib-

uted by RE sources. Removal of accel-

erated depreciation from wind genera-

tion and the uncertainty on GBI benefits

leaves REC mechanism as the only al-

ternate option for investors. Given the

importance of the REC mechanism, it

is expected that appropriate measures

would be taken to strengthen RPO/REC

market, in order that the 12th plan t arget

might appear difficult to achieve.

The first step would be of course to

strike a balance between consideration

of the financial health of the discoms

and their obligations. While their abilityshould be kept in mind, there ought to be

no let-up in enforcements.

The second issue which the industry is

keenly watching is the co-gen issue.Should electricity generation from co-

generation plants (most of which are

based on conventional fuels) be treated

as renewable or not, is the crux of the

issue. If the eligibility is established,

market will witness additional REC

supply of large magnitude. Simultane-

ously, co-generation based projects are

also exempted from RPO in states like

Madhya Pradesh and Tamil Nadu. How-

ever, recently the courts have said that

co-gen plants in Uttar Pradesh are not tobe treated as renewable energy power

stations. This ought to set a precedent,

and is a favourable development for the

market.

Yet another issue that requires tweak-

ing is that of RPO targets. With RPO

becoming mandatory, many regulators


15


18/44

discussion)), nominal wheeling charges,

refund of VAT (AP), faster statutory

approvals (AP, UP, GJ) etc. However,

bankers need to be convinced of thesolar-REC regime, because the inflow of

funds from sales of Solar RECs is quite

signif icant and material to the viability of

the solar projects. The industry has been

asking the government for an extended

applicability period (called control pe-

riod), more than the current five years.

A positive response will make bankers

comfortable.

In the next two years, Vishal Pandya,

Director, REConnect expects thataccelerated depreciation benefits will

be a key driver of capacity growth in

the S-RECs markets. Projections suggest

that S-REC capacity will reach 70 MW

by March 2013, and 300 MW by March

2014. Of this, 50-75 MW is expected to

be from IPPs, while the rest will be under

AD. This will result into about 14,000 S-

RECs issued this year and 1,20,000 S-

RECs in FY 2014.

On the demand side, despite moderatelevel of compliance, REConnect expects

demand for S-RECs in FY 2012-13 to be

about 1,40,000 and about 2,30,000 in

FY 2013-14. This is likely to result

in S-RECs trading well above the floor

price in this period.

Conclusion

In sum, the REC regime in India has got

off to a great start. Currently there are

certain issues that have led to an over-

supply of instruments, the chief of them

S-REC Market Prices

Source : REConnect

Solar REC Market (Present Demand Supply)

Source : REConnect

being the absence of sufficient room to

enforce them on some major obligated

entities. The judicial stance and the

improvement in the financial health ofstate-owned electricity dist ribution com-

panies give room for optimism that the

oversupply situation will be corrected.

Once the market stabilises, the second

wave of reforms, in terms of ushering

in a secondary market and derivatives

could come in, adding depth to the mar-

ket. There is little reason to doubt that

the REC mechanism will play its role in

support of the renewable energy indus-

try and be of service to the National Ac-

tion Plan for Climate Change.

After a dream start, there is a tem-

porary lull because of oversupply

of instruments

All eyes are now on the regula-

tors, hope pinned on their will to

enforce obligation

There is a crying need to deepen

the market by introducing sec-

ondary trading and derivatives

Bankers, though still circumspect

about RECs, are slowly gaining

confidence


16


19/44

SkyPower Global (http://www.skypower.com)

SkyPower Global, a leading provider of solar energysolutions, brings large-scale solar projects to life through theentire development and financing cycle.It is the developer and owner of Canada's first operationalsolar projectFirst Light 1 (9.1 MW nameplate capacity with126,000 solar panels). 250 MW has been contracted including67 MW in operation. 2.0 GW of applicationsthe largestdevelopment pipeline of solar projects in Canada. Strategicglobal partnerships with top international suppliers withpriority access to the most bankable, efficient PV equipmenton the market

Contact details: Sudhanshu Chopra,Associate Vice President,India and Africa Markets

Telephone: +1-416 979-4625; Mobile: +1 647-328-6572Email: [email protected]

Ballard Power Systems (http://www.ballard.com)

Contact details: Alok Goel, Country Manager,

Ballard Power Systems, Inc. is a global leader in PEM (proton

exchange membrane) fuel cell technology. We provide clean

energy fuel cell products enabling optimized power systems for

a range of applications. Ballard offers smarter solutions for a

clean energy future.

We are actively putting fuel cells to work in high-value

commercial uses every day. In fact, Ballard has designed and

shipped close to 150 MW of hydrogen fuel cell technology to

date.

Ballard has a multi-market growth focus in fuel cell products.

This drives greater revenue and margin potential, while lowering

risk for all stakeholders. Fuel cell applications are expected to

broaden in the mid-term, although our focus today remains

sharply on commercial opportunities in backup power,

distributed generation, material handling and bus applications.

Telephone: +91-11-42430555; Mobile: +91-9811116466Email: [email protected] D-Mall, Netaji Subhash Place, Pitampura,New Delhi110034

Autothermic Gasification Solutions Ltd(http://agsenergy.co.uk)

Autothermic Gasification Solutions Ltd uses the BrookesGasifier that efficiently converts biomass feedstocks intoelectricity and heat. It is a very economic, versatile and robustsystem proven on a wide range of feedstocks including those oflow calorific value and high moisture content.

Contact details: Dr Gulab MewaniMobile: +91-9821096148;Email:[email protected] Pleasant Park,65 Pedder Road,Mumbai -26

Exro Technologies (http://www.exro.com)

Exro has developed a proprietary, patented technology whichimproves the efficiency of electric motors and generators

when operated in highly variable applications. ReducingOff-Peak losses makes a significant impact on the overalleconomics, and can be an absolute game changer for manycleantech applications including wind and marine power,

electric vehicles and industrial motors.

Exro's core business activities are engineering, intellectualproperty and strategic development to monetize our IP byeither selling or licensing our unique technology (dependingon application and geography) to strategic OEM's (OriginalEquipment Manufacturers).

Contact details: John McDonald, CEOTelephone: +1-604-721-344; Email: [email protected] - 1847 Marine Drive, West VancouverBritish Columbia, Canada V7V 1J7

CANADA

The Canadian Trade Commissioner Service (TCS) plays an important role for Canadian organizations interested in doing businessoverseas. You can access their knowledge and networks at: www.tradecommissioner.gc.ca

thThe companies who would be part of the Canada Renewable Energy Business Mission to attend the 6 Renewable Energy India2012 Expo are given below.

17


20/44

About EBTC

The European Business and Technology Centre (EBTC) supports EU cleantech companies and researchers on theirmarket entry to India. The mission is to assist the Business, Science & Research Community - in Europe and India - to worktogether towards generating new business opportunities in clean technology transfer and establishing business relevantcooperation in the field of research, science and technology.

4 sectors

A dedicated team of sector specialists provide expertise in EBTC's 4 key focus sectors which are Biotechnology, Energy,Environment and Transport. All of these sectors offer enormous scope for closer EU-India collaboration. EBTC's servicesare offered in close cooperation with the bilateral Chambers of Commerce of the EU Member States, Embassies' commercialand science & technology departments and regional trade promotion agencies.

4 locations across India

Strategically located across India, in the metropolitan cities of New Delhi, Mumbai, Bengaluru and Kolkata, EBTC offerscomplete end-to-end solutions to EU cleantech companies who want to enter the Indian market.

4 steps from Visibility to Incubation

Promoting Europe in India & India in Europe Providing information & intelligence Supporting the market entry process from the beginning. Providing full service incubation support for businesses and R&D

Our Services

The following are the services that we provide : Market insight, IPR helpdesk, Market exploration, Project/partneridentification, Market entry strategy, Tender support, Funding / financing guidance, Incubation service, Event hosting

Participating EBTC Delegate Company Overview

European markets leading expert company in the design and manufacture of off-grid, portable and permanent

solar- powered generators.

Hydrogen on Demand - a patented and certified technology, suitable for domestic and small business purposes and

a model ready for development for use in retro-fitting vehicles, other models available that are for industrial use.

A Pioneering integrated, holistic, turn-key PV solution provider for park applications as well as commercial and

residential properties, supported by high-quality, energy efficient PV technology, Specialised TechnologicalDevelopment/ Construction, Marketing and Economics.

A Wood Cluster incorporating over 60 partner companies acting in wood and bio-energy industry, offering Ready

to move in solutions in Agro-biomass cultivation and waste management advisory, economic and financial

advisory, research development in usage of biomass, floor board, briquette, pellet and wood fuel production,

thermal wood processing, biomass systems construction, particularly highly efficient co-generation with ORC

turbine; storing, mechanical and pneumatic transport, flaking and drying (using a waste heat) of biomass systems

construction; briquetting & pelleting systems construction.

Engineering consortium specialised in the design, construction of geothermal electrical plants, control & total

project management expertise.

18


21/44

National Agency for New Technologies, Energy and Sustainable Economic Development targeted to research,

innovation technology and advanced services in the fields of energy promoting, collaboration with the

organisations and institutions of other countries in the scientific and technological spheres, defining technical

standards, taking part in major research programs.

A dedicated Energy specialist executive search and board advisory boutique with experience across the whole

energy and sustainability spectrum helping clients find the right executives to grow the new solutions to global scale

and candidates finding the roles where they can contribute their experience and talent to grow these solutions.

Technology Services, Consulting & Training, Power distribution products and services.

Objective of exploring Indian Clean Energy market

To meet potential business partners established solar companies capable of distributing products solar

companies involved in rural electrification.

To meet potential public and private research sector participants in the field of Biomass and Biowastes.

To make contacts with Indian companies in the energy, renewables and cleantech sectors that have expansion plans

outside India and need to build their management teams there. Companies who are looking to list on international

stock exchanges who desire to engage international non-executive directors.

To meet companies and clusters acting in wood, bioenergy, biomass energy industry & environmental protection.

We would like to start cooperation with companies (SMEs) with similar interests, exchange experiences and ideas.

To meet, Organic Rankine Cycle manufacturers active in India, Oil/gas/geothermal well drillers, Borehole

submersible pump manufacturers.

Looking for partners- manufacturers in Renewable energy manufacturers: PV, power from biomass, cogeneration

solutions with gas turbines.

To meet potential business partners.

To partner with BPO/KPO, Telecoms and IT expertise in energy sector.

Type of Indian partnership sought

Commercial Agreement

Joint Venture Agreement

Manufacturing Agreement

Sales of Equipment Turnkey Projects

Consultancy and Training

Research Projects

Technical Cooperation

Research & Development

License Agreement

Direct client relationships seeking to grow internationally

19


22/44

An initiative

conceptualized by

Ramesh Rajesh and

Vineeth Vijayaraghavan

to educate students and

empower rural students

with solar energy

Unscheduled power

cuts in rural and

sub-urban areas

hinder the efforts ofmillions of school

and college students

to study effectively

A power source if

tapped fully, ideally

would meet the

energy needs of the

world,

but the right people

and resources need

to be mobilized to

harness it

Awareness through

education is the driving

factor behind the

change. College and

school students from

cities and rural areas will

be educated about the

potential of solar energy

College students and

young professionals

will use this knowledge

to empower their rural

counterparts and

thereby impact their

lives


23/44

Knowledge Partner Founding Partner

Solar Awareness and Education for 10 million students

Solar lights for 1 million students

One collective vision

One dream...

Whether you have 10 minutes or 10 hours a week,come join the initiative and be a part of the change !

Website : www.solarillion.org Facebook : www.facebook.com/Solarillion

Twitter : www.twitter.com/solarillion

If you are an Organization, we, the Solarillion Team, encourage you to

partner with us...

giving light is the newgiving back

Email : [email protected]

Phone : +919840570880


24/44

"Clean technology boosts cooperation between Finland and India

Finland is a flourishing example, where a legacy of environmental awareness means that it is well placed to be a

world authority on cleantech. Today, Finland is a top expert in energy efficiency and renewable energy.

Clean technology has become a driver for Indo-Finnish relations. India is one of Finland's most important trade

partners in Asia and the main market for the Finnish environmental industry. Finnish companies have so far

invested over one billion euro in India in sectors such as environment, energy, technology and sustainability which

are closely inter-related, as we need better and more advanced technology to help introduce a greater degree of

sustainability into all aspects of life worldwide. Business based on sustainable solutions is expected to make a major

contribution to solving some of the world's most pressing environmental and social problems, and the companies

most likely to succeed here will be those that see beyond these problems to the potential they offer.

It is also one of the reasons that 'cleantech' is emerging as a key driver, bringing together a very broad palette of

products, services, and technologies that reduce our impact on the environment. The Cleantech Finland programme

has been launched as an umbrella initiative to promote the wide range of expertise that Finland has in this area.

Finland has emerged as a leader for clean technology products and solutions, and India is set to be an economic

superpower. Finnish cleantech expertise has been contributing strongly to the economic, social and environmental

development of India while strengthening its position as a leading know-how provider in clean technologies. It's also

evident that an increasing number of Finnish companies are leaping at the opportunities India has to offer. During

the last couple of years, Finnish cleantech companies have explored various business opportunities in India while

strengthening their cooperation with local companies, especially in the renewable energy sector.

India's National Action Plan on Climate Change has laid out a target of generating 15% of total power from

renewable sources by 2020, starting with 5% in 2010. As the various missions under the NAPCC are being

implemented, there presents a unique opportunity for Finnish SME's with decades of experience and expertise in

the realms of cleantech to participate with Indian companies that provide market expertise and scale to create

winning partnerships.

India's energy consumption is the fifth largest in the world and it exceeds production by 12.7%. Rapid economic

and population growth mean that the need for energy will continue to grow in the future, so the challenge is how to

increase both energy production and energy efficiency. Another major challenge is the availability of electricity: more

than 400 million Indians have no access to electricity.

For a rapidly growing economy like India, energy is extremely important for all its progress. India has developed its

energy sector in order to provide energy security, and one of the most important steps is to shift to renewable

sources of energy.

During a recent visit to Finland, Dr Farooq Abdulla, Minister for New and Renewable Energy, Government of

India, explained that he was particularly interested in hearing about solutions that Cleantech Finland member

companies have for the most important energy questions facing India. In 2002, there were 30 Finnish companies

operating in the Indian market. Today, there are over hundred Finnish companies that are directly present in India,

and another hundred are exporting to the Indian market or operating in India via agents. Finnish companies in Indiahave a committed investment of over 1 billion euros and they are employing over 30,000 people.

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25/44

Finland has high

expectations for future

cooperation with India. There

is a lot of development

potential in our bilateral trade,

industrial and R&D&I

cooperation. Renewable

energy and clean technologies

are one of the most promising

cooperation areas.

says Ms Mari Pantsar-Kallio,

Director at the Ministry of

Employment and Economy of

Finland.

The "Cleantech Finland" Program looks to have Finnish companies

collaborate with Indian companies to create winning partnerships in

a dynamic growing market with immense potential and further

deepen this relationship. With the focus now on low carbon growth

in India in a resource constrained environment, a collaboration at the

SME level will bring in tremendous investment and opportunities to

create new cleantech companies in India.

The "Cleantech Finland" delegation comprising 9 companies,

representatives from Tekes, Ministry of Employment and Economy,

Govt. of Finland and 8 researchers from institutions will be present

at the Renewable Energy India Expo 2012 under cleantech Finland

Pavilion and will host a special event on the theme Cleantech 2020

India-REnergizing SMEs, enabling a platform to meet, discuss and

collaborate with experts from India.

Problem solving is in our nature

CLEANTECH FINLAND is a network of top cleantech experts. Cleantech Finland links Finnish cleantech

expertise to global demand. In Finland, the cleantech sector includes more than 2,000 enterprises and it is highly

diversified. The national objective is to develop the sector into a new cornerstone industry. In 2010, Cleantech

Finland kick-started its operations in India with an aim to exchange knowledge on policies and partnerships.

Furthermore, the objective is to promote more effective cooperation and strengthened partnerships among

development leaders, experts, and practitioners. Today, there are about 90 Finnish companies in India. In addition,

about 100 Finnish companies work in Indian market through agent or local representative.

All over the world people are struggling with environmental challenges. Cleantech Finland's new SOLVED expert

service harnesses the Finnish problem solving ability and world-class technology expertise to solve them. SOLVED

expert service aims to be the world's leading cleantech community!

Cleantech Finland's SOLVED expert service brings together cleantech companies, clients and other interest groups,

the problems and their solutions on an online platform that enables new ways to be active and cooperate. The

experts from Cleantech Finland's network play a key role in SOLVED. In the service anyone can ask questions,

engage in discussion and do networking. The top experts from the respective field then provide the factual

information, perspectives and practical experience to solve a problem or take part in the discussion. About one

hundred experts have already signed in the service.

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Company Name: The SwitchCountry: FinlandRevenue: 93.8 MEURSector of Operation: Wind power, solar power, fuelcell applications, variable speed gensets, marineapplicationsNature of Operation: The Switch is a leading supplierof megawatt-class permanent magnet generator andfull-power converter packages for wind power andother renewable energy applications.

We offer proven engineering designs, flexibleproduction capacity and local service, wherever

needed. And we aim to create a brand-new world ofnew energy with you through value-addedpartnership to innovation.

India Office ContactThe SwitchApeejay Business Centre29, Haddows Road, NungambakkamChennai 600 006 IndiaPhone: +91-97-909-94051,Email: [email protected]: Chellappa Sundar

Company Name: Fortum India LtdCountry: Finland/IndiaRevenue: 2011 Fortums salestotalled EUR 6.2 billion and comparable operatingprofit was EUR 1.8 billionSector of Operation: Bio/Solar/ EnergyEfficiency/combined heat and power/nuclearNature of Operation: Fortum provides sustainablesolutions that fulfil the needs for low emissions,resource efficiency and energy security. Our activitiescover the generation, distribution and sales ofelectricity and heat as well as related expert services.

In India we are looking at Combined Heat andPower investment opportunities. Our aim is to buildCHP plants for the production of steam andelectricity for industrial customers. We are alsolooking into Solar Power.

India Office ContactFortum Holding B.V. India Liaison OfficeLevel 15, Tower B, Building 5DLF Cyber City Complex, Gurgaon 122002, HaryanaPhone: +91-8527694500

Company Name: ElcogenCountry: FinlandSector of Operation: Fuel CellNature of Operation: Elcogen manufactures anddevelops single cells and stacks based on anodesupported solid oxide fuel cell technology. We assistour customers on developing an optimized balanceof plant system for a complete fuel cell system.Elcogen is privately owned company established2001 in Estonia. Today, we have offices,development and production facilities in Tallinn,Estonia and Espoo, Finland.Elcogen is an ISO 9001 and 14001 certified

company.

Elcogen offers unit cells for stackmanufacturers/developers and stacks for systemmanufacturers/developers. In addition to productsales, Elcogen can provide valuable know-how forco-operation partners, helping them to develop andproduce state of the art SOFC stacks and systems.

Company Name: Merus PowerDynamics OyCountry: FinlandSector of Operation: Wind/Solar/Fuel Cell/ Energy EfficiencyNature of Operation: Merus Power designs,manufactures and sells equipment for improvingpower quality, energy efficiency and productivity ofthe customers processes. These benefits can beprovided by modern, high quality dynamic reactivepower compensation and harmonic filtering systemsknown as Active Harmonic Filter, STATCOM andStatic Var Compensator (SVC)

Merus Power is interested in finding partners in thefield of power quality and energy efficiency. In searchof a partner that knows the power quality business,its clients and other interest groups. Capable partnerhas the ability to make power quality surveys by itsqualified staff and suitable equipment.

Contact: In Finland Sales Manager Aki Leinonen.Address: Pirkkalaistie 1, 37100 Nokia, FinlandEmail: [email protected]

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Company Name: Outokumpu India Pvt Limited /Part of Outokumpu GroupCountry: Sales Office in India / Head Office inFinlandRevenue: 5009 MEUR - Outokumpu GroupSector of Operation: Stainless steel producer for allindustry segments; Wind/Bio/Solar/Fuel Cell/Energy EfficiencyNature of Operation: Outokumpu is one of the

world's leading stainless steel producers.

Our product range includes hot and cold rolled flatproducts, precision strip, tubular and long products

together with a comprehensive range of fittings.Being the oldest and very strong in R&D for newproducts and applications, Outokumpu set upcompany in India in 2006 to help build a stainlessIndia.

We are serving India's stainless needs from fivelocations: New Delhi, Mumbai, Chennai, Pune and

Vadodara.

India Office Contact: Yatinder Suri, Country HeadOutokumpu India Pvt Limited,New Delhi

Telephone: +91-11-46518444Mobile: +91-9818120952Email: [email protected];

Website: www.outokumpu.com

Company Name: Picosun OyCountry: FinlandSector of Operation: Equipment manufacturer(Energy efficiency)Nature of Operation: Picosun Oy manufactures

Atomic Layer Deposition (ALD) equipment. ALD isan advanced thin film coating method with whichsolar cells' efficiency can be increased, completely newconcepts for tomorrow's photovoltaics developed, fuelcells' operation and long-term stability improved, nextgeneration 3D batteries manufactured and severalother renewable energy and cleantech applicationsrealized.

Business Interest in India: Creating new customercontacts and finding local cooperation partners

Picosun's distributor in India is: Specialise InstrumentsMarketing Company, Room No. 305, A Wing, 3rdFloor, Building No. 2, Kailas Industrial Complex,

Vikhroli (West)Mumbai 400079, India

Tel: +91-22-24071989 / 24025529Mobile: +91-98-20093150; Fax: +91-22-24021360

Email: [email protected]: www.specialiseinstruments.com

Company Name: MHG Systems Oy LtdCountry: FinlandSector of Operation: BioenergyNature of Operation: Our solution MHG Energy ERPprovides end-to-end management of entire energyproduction and acquisition process enabling newbusiness models based on highly automated processes.

We are searching Indian Energy, Bioenergy,Engineering and Green ICT companies for technologytransfer and licensing cooperation for comprehensiveMHG Bioenergy and MHG Energy ERP services.

Company Name: Chempolis OyCountry: FinlandSector of Operation: BioChempolis Ltd. is the leading Finnish bio-refiningtechnology company providing profitable andsustainable solutions for biomass, sugar, fuel, palm oil,chemical and paper industries. Chempolis coreproducts are the two patented third generationtechnologies for bio-refining of non-food biomassesinto biosugars, advanced biofuels, platformbiochemicals and biocoal.

Business Interest in India: Chempolis negotiates for

co-operation with Indian companies to establishcommercial-scale bio-refinery projects in India.Chempolis aims at licensing its patented bio-refiningtechnologies and providing EPCM services for theprojects according to customer needs. The company isalso interested in possibilities of Joint VenturePartnership.

India Office ContactMr. Pasi Rousu, President, Asia & Pacific, E-mail:[email protected], Tel: +66-80-818-4862

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How did you come about to starting

Kiran Energy? You managed to raise

your Series A from New Silk Route,Bessemer Ventures and Argonaut Ven-

tures, at a time when Solar projects

were still new to India and there was

not much happening on the policy front.

What was your pitch to the investors?

Kiran Energy was established as a solar

utility serving Government and Corporate

off-takers. This was the same time as

the introduction of the Jawaharlal Nehru

National Solar Mission, the Gujarat Solar

Policy and solar economics globally were

coming to a point which favoured India.

Kiran Energy developed the competencyto build top quality solar projects. We

also created a robust ecosystem of pro-

fessionally managed & highly experienced

team, financing partners and world-class

technology providers.

You have developed projects under the

Gujarat state policy, JNNSM Batch I and

now developing under JNNSM Batch II.

What has been your experience so far?

Over the last 2 years, we have created

Ardeshir Contractor is the Co-founder, Managing Director andCEO of Kiran Energy, a solar energy power plant developer. Kiran

Energy has over 300 MW of capacity under various stages of plan-

ning, development and commissioning. The company also has 2

operational solar power plants of 25 MW capacity.

20MW Solar power plant located inGujarat Solar Park

KIRAN ENERgy BULLISh ON DEvELOpINg SOLAR

pOWER pLANTS FOR OpEN ACCESS CUSTOMERS

Kiran Energy planscluster based approach

to solar project

development.

As solar economicslooks increasingly

promising and attractive

and government lays

more focus on the

sector, we will seeincreasing installations

of solar power plants.


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excellent. We have an excellent in-house

procurement team and we work only

with reputed technology suppliers and

contractors. All this provides comfort to

banks. Additionally we try to locate our

plants in high insolation zones and have

teams on the ground that carry out land

development and plan for evacuation in-

frastructure.

Kiran Energy has announced plans to

develop solar power plants and sell

power to open access and third party

customers. What has been the response

so far and how do you see this segment

developing?

There has been a growing interest among

corporates for both free field and roof

top systems. We have made progress

in signing contracts or PPAs with some

large corporates. We are very bull ish and

see this as a big opportunity.

Our value proposition is to design,

finance, build, operate and own solar

power projects. In turn we require a long

term power off take agreement. We typi-

cally look for credit worthy companies.

What are your plans in the distributed

generation, rooftop and off grid space

in solar?

We are in active discussion with private

firms such as BPOs, IT Companies, man-

ufacturers, other commercial establish-

ments to help them supply solar power

through roof, near field and other off-

grid projects.


lenges in the solar REC market cur-

rently and what kind of changes would

like to be seen introduced in the REC

market?

REC market will need to deepen and

some of the challenges that we see are

poor liquidity and certainty of off-take.

Additionally, uncertainty on pricing and

short term validity of the certificates is pre-

venting development of the REC market.

Plant

Location

Capacity

Addition

Planned

(MW)

Commis-

sioning Date

Rajasthan

(Phalodi)

60 February,

2013

Rajasthan

(Phalodi)

40 End 2013

Karnataka 50 Mid 2013

Tamil Nadu 50 Mid 2013

Maharashtra

50 Mid 2013

Gujarat 40 Mid 2013

What do you see as the biggest chal-lenges for developing solar projects go-ing forward?

Some of the foreseeable challenges for

development of solar projects could be

availability of land, evacuation infra-

str ucture and open access charges. How-

ever, we are bullish on the sector given

the support various governments are

providing to the sector and we dont see

these as negatives.

What kind of capacity additions haveyou planned over the next 3-5 years?

Kiran Energy is building a cluster of 65

MW in Jodhpur, Rajasthan under a com-

mon land bank and evacuation infrastr uc-

ture. Kiran Energy plans to expand this

Jodhpur cluster to 100MW in the near

future. Similarly in Gujarat, with 20MW

currently operational, the cluster shall

be further expanded to 100MW. Kiran

Energy is replicating the cluster model in

other states like Tamil Nadu, Orissa, Ma-

harashtra and Karnataka. Typical clusterswill be a minimum of 50MWs.

5MW Solar Power Plant located in

Phalodi, Rajasthan

utility scale plants for supplying solar

power to the government in Gujarat and

Rajasthan. Our plants have been opera-

tional since January this year and they

are performing better than expected.

As solar economics looks increasingly

promising and attractive and govern-

ment lays more focus on the sector, we

will see increasing installations of so-lar power plant. Infrastructure support

from government regarding evacuation

has been excellent and states have been

open and supportive in recognising the

need for access to land, grid connectiv-

ity etc.

As financing continues to be a chal-

lenge in solar, you have been able to

raise both equity and debt and are of-

ten credited to have raised funding for

your projects on a non-recourse basis.How have you managed to do that?

We have been able to put together a qual-

ified and professional team both on the

financing and project management side.

We have a highly experienced projects

team that carry a cumulative experience

working in the solar industry for more

than 50 years and with a strong focus

on long term plant reliability and per-

formance & operational excellence. All

our operational projects are executed in

time and our past track record has been


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You took over as the Country Head in

India for First Solar in May this year.

How has your experience been so far?

The Solar industry in India is just begin-

ning to scale up, primarily backed by the

National Solar Mission and the Gujarat

State program. The track record over the

past two years has been very encour-

aging as over 1 GW of grid connected

utility scale solar projects have achieved

fruit ion in India. While globally the solar

industry is passing through a challeng-

ing period due to over-capacity in manu-

facturing and over dependence on feed-

in-tariff (FIT) markets, India presents a

very compelling case to be a sustainablesolar market, and thats what makes solar

in India an exciting place to be.

A combination of great solar resource,

18% peak energy deficit on the grid, and

over 300Mn people who use kerosene or

diesel to meet their power needs, opens

up avenues for different business mod-

els to create sustained demand for solar

power. The Indian market needs solu-

tions where world class technology is

packaged with cost effective execution

to deliver excellent value to the consum-er. Having a differentiated technology

(which we do), isnt enough. It has to work

on the ground, at the guaranteed perfor-

mance standards for 25 years. First Solar,

with its ability to deliver power solutions

from development through financing

and execution to O&M, is uniquely posi-

tioned (amongst the PV manufacturers)

to serve this demand.

We also believe that there are very capa-

ble local organizations which have well

developed skill sets to execute and deliv-

er power projects in India. We intend to

partner with such companies and bring

in an overall solut ion for solar power de-

livery that combines our global projectdevelopment and technology expertise,

with local knowledge and understand-

ing that the in-country partner provides.

First Solar, CEO, James Hughes in August

this year has talked about partnerships with

Indian developers for solar power plant de-

velopment. How has that progressed?

We are in dialogue with several organiza-

tions at this stage, to create partnerships

that will target power buyers in India and

offer them an option to use solar ener-gy. As mentioned above, the objective

is to complement the Indian companies

operating in the solar utility space, and

bring in the skill sets as required. One of

the areas we are focussed on is building

confidence within the Indian domestic

capital markets (especially on project

financing), by way of demonstrating as-

set quality. Our global experience in de-

veloping over 3 GW of utility scale solar

projects (majority of them in similar hot

climatic conditions), would be of value

in these development partnerships.

There has often been a contention that,

First Solar has had an undue advantage

due to the twin factors of low cost US

EXIM financing and allowing of module

import in the JNNSM due exemption

of Thin Film under Domestic Content

Rules (DCR). Comments?

On the contrary, less than 30% of our

current installed base of over 200 MW

in India has been financed via US Exim.

Also the DCR rules apply only to NSMprojects where as First Solar had an

Sujoy Ghosh is the Country Head in India for First Solar

FIRST SOLAR TO MAINTAIN AT-LEAST 20%

ShARE IN INDIAN SOLAR pv MARKET

Our endeavour would

be to maintain at-leasta 20% share in the solar

PV space by offering

energy solutions to the

Indian consumers.

We are in dialogue

with several organiza-tions at this stage, to

create partnerships that

will target power buy-

ers in India and offer

them an option to use

solar energy.

Less than 30% of ourcurrent installed base

of over 200MW in India

has been financed via

US Exim.


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Panchabuta India Renewable Energy Outlook